The U.S.-U.A.E. Business Council hosted a lunch with The Honorable Ellen Tauscher, Under Secretary of State for Arms Control and Security, on June 7th, continuing a series of policy briefings and meetings with top Obama Administration officials. The lunch brought together key representatives from the business community, the Hill, and the Administration to discuss defense and security priorities related to U.S.-U.A.E. relationship. (A complete transcript of U/S Tauscher’s remarks as prepared is included below.)
U/S Tauscher highlighted the breadth and depth of the existing bilateral relationship, noting that over 750 U.S. companies, and 30,000 Americans live and work in the U.A.E. While the commercial relationship is a well-known success, the strategic, defense, and security relationship also thrives, although less overtly. According to U/S Tauscher, the value of current Foreign Military Sales to the U.A.E. stands at almost $22 billion, making the U.A.E. the U.S.’s largest Foreign Military Sales Customer in 2009. By helping the U.A.E. to expand and enhance its existing military capabilities, the U.S. is investing in the security of this vital Gulf ally, the most active Arab partner in Operation Enduring Freedom.
According to U/S Tauscher, there are many instances of collaboration to point to, but the successful adoption of the peaceful civilian nuclear 1-2-3 Agreement in many ways epitomizes the cooperative nature of the relationship. “The agreement is a tangible expression of the United States’ desire for close cooperation with the U.A.E.,” said Tauscher, “and it is part of a strong and mutually beneficial political, security, and economic relationship.”
By actively seeking to set an example of responsible, transparent and non-proliferative use of nuclear energy, and by enforcing export controls on sensitive items headed for Iran, the U.A.E. has established itself as a leader in the Proliferation Security Initiative. “We do consider the U.A.E. one of our closest partners in this important endeavor,” said Tauscher.
Turning to the situation the ground in the Gulf, U/S Tauscher said that Iran’s continued failure to comply with international obligations was the primary reason the U.S. advocates for a regional multi-lateral missile defense architecture that complements existing missile defense systems in individual Gulf countries. The Obama Administration is focused on implementing the proper security architecture to protect U.S. troops and allies from Iran’s short and medium range ballistic missile capabilities. This includes an effort to strengthen missile defenses in the Gulf with an emphasis on interoperability. “Our goal is to help construct a suitable and effective defense architecture with the U.A.E. and other partners in the Gulf to reliably address a host of regional contingencies,” said Tauscher.
Given both the vulnerability and strategic importance of the region, it is hard to overstate the importance of the U.S.’s relationship with the U.A.E. “Our military relationship is quite robust,” said Tauscher. “It seems to me that we are doing quite well at advancing our defense cooperation and security ties.”
Under Secretary of State Ellen Tauscher
U.S.-U.A.E. Business Council Luncheon
JUNE 7, 2010
AS PREPARED
Danny, thank you so much for the invitation and your introduction.
I want to thank Ambassador Otaiba who has become a good friend and is a great representative for his country.
The United States shares a very close and constructive relationship with the United Arab Emirates that encompasses a broad array of important issues, ranging from finance and clean energy to education and medicine.
I know that when most people think of our relationship they focus on trade and commerce and our growing security relationship. Some of you might have been here last year to hear from my friend, Commerce Secretary Gary Locke, who spoke about the UAE as an important trading partner and the largest export destination in the Middle East / for goods and services produced in the United States.
But perhaps more importantly, there is a true people-to-people relationship: More than 30,000 Americans live and work in the UAE, and over 750 American companies are doing business there. These examples are positive signs of our mutual efforts to strengthen and deepen an already strong relationship.
Let me take a few minutes to talk in broad terms about the security relationship between the United States and the United Arab Emirates. As you know, last December, our countries brought into force the United States – United Arab
Emirates Agreement for Peaceful Nuclear Cooperation.
Ambassador Otaiba and I had the honor of signing the diplomatic notes that brought this agreement into force.
This agreement, the first of its kind, will allow cooperation with the UAE in meeting its domestic energy needs, in a manner reflecting a strong commitment to the highest standards of nuclear safety, security, and nonproliferation. The agreement is a tangible expression of the United States’ desire for close cooperation with the UAE and it is part of a strong and mutually beneficial political, security, and economic relationship.
As expressed in the agreement, the UAE undertook an obligation to pursue nuclear power by importing nuclear fuel rather than developing expensive and proliferation-sensitive fuel cycle technologies. While we are disappointed that a United States firm did not win the contract for the first four nuclear power plants in the UAE, our companies are already heavily involved in the UAE nuclear program and we look forward to further commercial participation.
There are several issues that I want to address beyond the 1-2-3 agreement: our overall military to military relationship, Iran, and the prospects for missile defenses in the UAE.
Our military relationship is quite robust. I am pleased that this October the National Defense Industrial Association, in partnership with the U.S.-U.A.E. Business Council and the UAE’s embassy here, will lead a Department of Commerce certified aerospace and defense trade mission to the UAE.
Beyond that, the UAE hosts more United States Navy ships than any port outside of the United States. The Gulf Air Warfare Center at Al Dhafra Air Base is an important regional facility that aims to enhance interoperability and cooperation between the United States, Egypt, France, Jordan, and the United Kingdom. And, the UAE is one of our most active Arab partners in Operation Enduring Freedom.
Our goal is to help construct a suitable and effective defense architecture with the UAE and other partners in the Gulf to reliably address a host of regional contingencies. And it seems to me that we are doing quite well at advancing our defense cooperation and security ties. The current total of the UAE Foreign Military Sales portfolio is valued at approximately $22 billion. In 2009, the UAE was our largest Foreign Military Sales customer.
Our aim is to strengthen the UAE’s security through the provision of advanced defensive weaponry to help the UAE to bolster its own national defense capabilities; to enhance interoperability and promote a common defense strategy to meet shared threats; and to modernize the UAE’s military.
The United States has sold large transport aircraft, such as the C-130 and C-17, to the UAE which is using them to support NATO airlift operations in Afghanistan. The United States also has sold F-16 fighter jets to the UAE and the UAE has participated in the United States Air Force’s Red Flag exercises at Nellis Air Force Base in Nevada.
Second, the UAE is critical to international efforts to curb and stop nuclear proliferation. The UAE has taken important steps to enforce export controls / to ensure that sensitive items do not make their way to places like Iran. I’d like to brag, but we normally do not talk about these things in public. But we do consider the UAE one of our closest partners in this important endeavor.
That said, let me talk about Iran for a moment. The Iranian government continues to meddle in its neighbors’ internal affairs and support terrorist organizations. Were Iran to successfully develop a nuclear weapon, the consequences for the region could be devastating.
The recent IAEA Director General’s report shows that Iran has continued its failure to comply with its international obligations. The report underscores that Iran has refused to take any of the steps required of it by the United Nations Security Council or the IAEA’s Board of Governors. Both actions are necessary to enable constructive negotiations on the future of its nuclear program. My colleague at the United Nations, our ambassador Susan Rice, is working hard counting noses and herding cats so that we can get a vote on sanctions by the end of the month.
Beyond seeking a nuclear capability, Iran has the largest inventory of ballistic missiles in the Middle East. It continues to expand the size, range, and sophistication of its arsenal. That’s why President Obama has focused on making sure that we put into place the proper architecture to protect our forward deployed troops, our friends and our allies from Iran’s short and medium range missiles.
The United States is working with security partners in the Gulf to strengthen regional missiles defenses. We have deployed sea- and land-based missile defense systems. The UAE is building and will deploy a missile defense system. This capability will be based around several of our systems, including the state of the art Terminal High Altitude Air Defense (THAAD) system, which is nearing delivery to the United States Army. Other Gulf Countries have PATRIOT missile defense systems deployed as well.
What we need to establish with our Gulf partners is a regional missile defense architecture that enhances the capabilities of their individual missile defense systems. The truth and physics is that it is easier to defend the UAE when it is plugged into a regional architecture that combines the sensors and interceptors of its neighbors and the United States. If you’re going to try to hit a bullet with a bullet, it’s better to do it from the side rather than head on. The speed, range, and lethality of modern ballistic missiles underscore the need for a multilateral approach.
As I mentioned earlier, our government has also been working closely with the UAE to prevent the diversion of dual use items to Iran and elsewhere. The UAE is a leader in the Proliferation Security Initiative, which is the global effort to stop dangerous shipments from reaching dangerous destinations. In January, the UAE hosted the second PSI Leading Edge exercise that included 30 countries to conduct interdiction exercises at sea and in port. This exercise provided the opportunity for PSI partners to gain some valuable experience.
We’re also encouraged by the UAE’s export control efforts. The UAE is the first country in the region to implement an export control law.
Though the amount of global trade that is regulated by export controls is not that large, there is a perception that export controls can inhibit trade. But our efforts have focused on highlighting the way in which these laws strengthen rather than restricts or impedes trade.
For example, we’ve seen the benefits of export controls in both Hong Kong and Singapore, where businesses continue to grow despite regulations. We know that high tech companies also want the peace of mind of knowing that their products will not be diverted to an unintended end-user. Businesses in the UAE must play a key role in preventing the improper transfer of sensitive items.
In this regard, it would be particularly beneficial for our Emirati partners to hear from American businesses who have a long history of complying with United States export control regulations.
That’s why organizations like yours are so important. The U.S.-U.A.E. Business Council is indispensible in fostering the relationship between our two countries on a wide range of issues. I thank you for your hard work, your passion and your patriotism. And with that, I’ll be glad to take a few questions.
